Real estate giant's report reveals: The reason why contractors are giving you loans
According to second-quarter reports for 2026, Efi Capital sold 379 apartments in the first half of the year—an increase over last year. However, the company faces pressure to maintain momentum, especially as 712 of its units are tied to the 'Mechir LeMishtaken' program.
Efi Capital is recognized as one of the top apartment sellers in Israel. While some critics attribute this to the company's reliance on the 'Mechir LeMishtaken' (Price for the Resident) program rather than marketing prowess, the firm effectively utilizes state-lottery projects to minimize entrepreneurial risk while maintaining a presence on the free market.
In the first half of 2026, the company sold 379 housing units, a 171% increase compared to the 140 units sold during the same period in 2025. Notably, 274 of these units (over 72%) were sold through government housing programs. With 73% of its total inventory classified as 'Apartment with a Discount,' the company must work aggressively to match last year’s total of 888 units sold over three quarters.
Financing Benefits and Costs
During the second quarter, 72% of sales involved favorable payment terms (15%-20% at signing, balance at delivery), totaling 133 million shekels in revenue. Approximately 28% of sales utilized 'contractor loans' (where the company subsidizes interest for the buyer), totaling 51 million shekels.
The company incurred 2.7 million shekels in interest costs, representing 5.2% of the loan volume. In effect, providing these financing benefits serves as a substitute for direct price discounts, costing the company 5.2% while providing tangible value to the customer.
The Strategic Advantage
Although Efi Shkedi stated in early 2025 that the company would gradually phase out indexation exemptions in Tel Aviv, the financial logic remains clear: contractor loans provide immediate liquidity. By receiving 50% of the apartment's value at signing, the company saves approximately 8% in interest on its own bank leverage. Thus, contractor loans are a highly efficient tool for the developer.
In the second quarter, the company sold 237 units, compared to 142 in the first quarter and 86 in the second quarter of 2025. Since late June, an additional 34 units have been sold. Marketing models, including favorable installments and indexation exemptions, accounted for 71% of free-market sales in the second quarter.
Regarding the security situation and geopolitical events, including Operation 'Lion's Roar,' the company reports no material damage to sales forecasts for 2026 or deterioration in its own credit conditions. Minor construction delays are considered immaterial in the medium-to-long term, and adjustments to actual sales prices have successfully mitigated the impact of rising costs on gross profit.
